Thank you regarding the digging and investigation.  I hesitate to list this as a bug, because there are several theories here, in my opinion.

It could be classified as a bug IF DNN is supposed to treat user rolls in a cascading format, but from my understanding of things it is not intentened to create those cascading roles. 

On the other hand, I can see this as a failure possibly in the events module due to the fact that it fails to acknowledge the 'Portal Administrator' account as master regardless of the moderator role.  As I am just not that experienced in the security roles and configuration of both the module and the DNN core in general, I feel this is a decision best left to someone more versed in the software.  If maybe someone who knows more than I do still wishes me to report this in Gemini, I will do so.  Unfortunately, my overreactions to certain software issues (not restricted to DNN) has prevented me from claiming this as a bug but possibly more of a technicality?  Maybe someone can advise me further as I would love to do my part to help the DNN project along wherever I can.